The day book. (Chicago, Ill.) 1911-1917, February 22, 1916, LAST EDITION, Image 8

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MHOTMaaWHBnHlHliHBiHH. -... - -. , -i'Jt.wj.i .' 1 mm- "!w it- 1'i V 7-1" (rv ""-." TTTTrTTff I "J '7SFISVTC7VLM I I JWIIIL1U WHmMNIBlBln, - -. " ' I- -- - 'r-w-",!";JUDGE WINDES GRANTS HEARING ON PHONESALE COUNCIL WAITS RESULTJudge Windes announced two decisions yeserdayjn the case of JohnFitzpatrick, taxpayer- and officer ofPublic Ownership league, asking injunction to stop Mayor Thompsonand "certain aldermen" from sellingthe city's rights to the automaticphone system for $500,000. After argument by Charles P. Schwartz, attorney for Fitzpatrick, Judge Windessaid the court would follow two linesof action:1. Motion for temporary injunction would be denied under presumption "that mayor and council will dothe right thing."2. Motion is granted for hearingon whether a permanent injunctionshall be granted and March 6 fixedas the date when facts and arguments shall be presented qn the alleged "fraudulent and unlawful" contract of sale involved in the ordinancenow before city council.Chairman Lewis D. Sitts of council gas-oil committee did not call upthe automatic phone ordinance at thecouncil meeting yesterday afternoon.He announced that he does not believe it good public policy for the aldermen to, vote on a measure whilethat measure is being scrutinized incircuit court under charge of fraud.John Fitzpatrick said he had nocomment to make on the action ofthe day except that he is satisfiedwith city council delaying its vote tillcourt has acted.Among those present in Judge Windes' courtroom were Frances CraneLillie, Ellen Gates Starr, MargaretHaley, Morton Lu Johnson, Ben Tetzlaff, Dr. Karl F. M. Sandberg and D.P. Riordan. Att'y -Schwartz' argument divided as follows:1. Attempt is now being made todispose of the rights and property ofthe city in the Automatic TelephoneCo. The value of these rights andproperty is $6,300,000, at least Theprice of $500,000 is inadequate andthe presumption is that it is fraudulent 2. Approval by the city of a largecompeting company buying a smallerone is in violation of the anti-trustlaws which prohibit creation" of monopolies in restraint of trade.3. Injury will be done taxpayersthrough higher burden of taxes andinjury ' will be done phone usersthrough higher rates.4. Rights of the city are jeopardized by the proposed action of citycouncil and therefore injunction isasked while the matter is heard.Judge Windes then asked two questions: "Does the bill include any declaration of the mayor that he willapprove of the ordinance?" and "Arethere any allegations of fraud againstindividual members of the council?""The discrepancy between $500,000, the sale price, and $6,300,000,which is the evident minimum valueof the property, is the chief basis forthe allegation of fraud," repliedSchwartz."Under the circumstances I thinkI ought to deny the motion at thistime, under the presumption that themayor and the city council will dothe right thing at this time," saidJudge Windes.o oLETTERS WARN DANGER TO PASSENGERS ON LINERNew York, Feb. 22. Anonymousletters, warning against taking passage on liner Espagne because ofdanger of submarine attacks, havebeen received by Americans intendingto sail on the ship, according to reports reaching steamship officials today. Espagne sails Thursday.Mrs. F. Banker Hillton today madepublic a letter which she had received. It is similar to anonymouswarnings received by Americans whosailed on Lusitania and lost theirlives when big Cunarder was torpe-"doed and sent to the bottom.A-A J 4 fellfiW. .'Tim intfn . iihfTkf '! -Jft&i i'sAii in ii im.ii ihimSiiiSHHMHBMBi